Australasian Investment Review (AIR) is a free daily news service with a weekly online magazine covering global financial markets with a focus on Australia, New Zealand and Asia.
October was a tough month for sharemarkets and commodities, but not if they were priced in Australian dollars.
Good start to the week – we are up 98 – almost double the 50 point gain the SFE Futures suggested this morning. All sectors up and doing well. Construction sector outperforming with Leighton's up 10.7%, WorleyParsons up 10.4% and Macmahon Holdings up 11.6%. Only a couple more sleeps ahead of the US election. Senator Obama is still the clear favourite to be the next US President. We can expect an RBA decision on interest rates tomorrow 2:30pm – most of us will hear about it at the races.
In Australia, the Reserve Bank is likely to cut interest rates by another 0.5% to 5.5% following its meeting tomorrow, Melbourne Cup day.
In a move that will pressure BHP Billiton and Rio Tinto to update their plans, the huge Vale mining company of Brazil (formerly known as CVRD) has cut production or iron ore, nickel, aluminium and other minerals because of the slowdown in global demand, especially from the steel makers generally and the steel sector in China.
Shares in APN News & Media will jump today after its cash strapped parent in Ireland indicated it had received offers for its stake and would sell.
More moves in some of Asia's major economies to try and prepare them for the impact of a slowdown in 2009.
Hopefully it was goodbye to misery when October trading finished on Friday night and hullo some upside in November.
Poor finish to the week – down 52 – despite a positive night on Wall Street. Metals in London have done most of the damage today causing resources to underperform. Financials are also struggling. All major banks were doing OK earlier this morning but are now all in the red.
We are all going to be poorer and feel poorer over the next couple of years, according to the second most senior bloke at the Reserve Bank, Deputy Governor, Ric Battellino.
AGL Energy is suddenly in the best position for a company to be in during the current downturn.
